1) ...are the bank's overall primary source of bank liabilities and are accounts from which the depositor cannot write checks? A. demand deposits B. negotiable certificate of deposits C. Discount loans D. Non-transactional deposits 2) In general, banka make profits by selling ........... liabilities and buying assets. A. long-term; short-term B. short-term long-term C. high interest rate low interest rate D. long-term, long-term 3) Which of the following is NOT included in the RSA (rate sensitive assets)? A Short-term securities. B. Variable-rate mortgages. C. Reserves and cash items. D. Short-term commercial loans 4) Which of the following tools are monetary policy tools? 1. Discount policy II. Reserve requirements. IL Quantitative casing. IV. Negative interest rates on banks' deposits 5).......... are the bank's overall primary source of bank liabilities. A. demand deposits B. fed funds Cdiscount loans Non-transaction deposits 6) An open market operation leads to an... of reserves and deposits in the banking system and hence to ain)... of the monetary base and the money supply A sale contraction B. purchase; expansion contraction Csale; expansions expansion D. purchase expansion expansion